BUAD 332 Exam 3
2025/2026 Exam Questions and
Detailed Answers | Get it 100% Correct
Answers
Narrowly, what is a price? - 🧠 ANSWER ✔✔Narrowly, price is the amount
of money charged for a product or service
Broadly, what is a price? - 🧠 ANSWER ✔✔Broadly, price is the sum of all
values that consumers exchange for the benefits of having or using the
product or service
Price is not just money, think of price as - 🧠 ANSWER ✔✔sacrifice
Example of price - 🧠 ANSWER ✔✔$88 boots from amazon versus exact
same pair at Dillards for $88 as well.
The price here is wait-time, trying them on, or convenience.
The "lower price" depends on customer value
Internal factors affecting price decisions - 🧠 ANSWER ✔✔Marketing
objectives
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 1
,Marketing mix strategies
Costs
Organizational considerations
External factors affecting price decisions - 🧠 ANSWER ✔✔Nature of the
market and demand
Competition
Other environmental factors (economy, government, re-sellers, social
concerns)
In general, factors affection price decisions represent - 🧠 ANSWER
✔✔either a limitation or "wiggle room"
Marketing objectives affecting pricing decisions - 🧠 ANSWER ✔✔1.
Survival
2. Current Profit Maximization
3. Market Share Leadership
4. Product Quality Leadership
Survival - 🧠 ANSWER ✔✔Low prices hoping to increase demand
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
,Current Profit Maximization - 🧠 ANSWER ✔✔Choose the price that
produces the maximum current profit
Market Share Leadership - 🧠 ANSWER ✔✔Low as possible prices to
become the market share leader
Product Quality Leadership - 🧠 ANSWER ✔✔High prices to cover higher
performance quality and R&D
Product Quality Leadership Example - 🧠 ANSWER ✔✔Pharmaceuticals
Fixed costs (overhead) - 🧠 ANSWER ✔✔Costs that don't vary with sales or
production levels
Total costs - 🧠 ANSWER ✔✔Sum of the fixed and variable costs for any
given level of production
Costs determine the... - 🧠 ANSWER ✔✔Floor
Customers determined the... - 🧠 ANSWER ✔✔Ceiling
External factors affecting Pricing decisions - 🧠 ANSWER ✔✔- Markets and
Demand
- Competitors' costs, prices, and offers
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
, - Other external factors: Economic conditions, reseller reactions,
government actions and social concerns
Market and demand factors affecting pricing decisions - 🧠 ANSWER ✔✔-
Pure Competition
- Monopolistic competition
- Oligopolisitic competition
- Pure Monopoly
Pure Competition - 🧠 ANSWER ✔✔Many buyers and sellers who have little
effect on the price
EX: Farming
Monopolistic Competition - 🧠 ANSWER ✔✔Many buyers and sellers who
trade over a range of prices
EX: Jeans
Oligopolistic Competition - 🧠 ANSWER ✔✔Few sellers who are sensitive to
each other's pricing/marketing strategies
EX: Airlines
Pure Monopoly - 🧠 ANSWER ✔✔Single seller
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 4
2025/2026 Exam Questions and
Detailed Answers | Get it 100% Correct
Answers
Narrowly, what is a price? - 🧠 ANSWER ✔✔Narrowly, price is the amount
of money charged for a product or service
Broadly, what is a price? - 🧠 ANSWER ✔✔Broadly, price is the sum of all
values that consumers exchange for the benefits of having or using the
product or service
Price is not just money, think of price as - 🧠 ANSWER ✔✔sacrifice
Example of price - 🧠 ANSWER ✔✔$88 boots from amazon versus exact
same pair at Dillards for $88 as well.
The price here is wait-time, trying them on, or convenience.
The "lower price" depends on customer value
Internal factors affecting price decisions - 🧠 ANSWER ✔✔Marketing
objectives
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 1
,Marketing mix strategies
Costs
Organizational considerations
External factors affecting price decisions - 🧠 ANSWER ✔✔Nature of the
market and demand
Competition
Other environmental factors (economy, government, re-sellers, social
concerns)
In general, factors affection price decisions represent - 🧠 ANSWER
✔✔either a limitation or "wiggle room"
Marketing objectives affecting pricing decisions - 🧠 ANSWER ✔✔1.
Survival
2. Current Profit Maximization
3. Market Share Leadership
4. Product Quality Leadership
Survival - 🧠 ANSWER ✔✔Low prices hoping to increase demand
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
,Current Profit Maximization - 🧠 ANSWER ✔✔Choose the price that
produces the maximum current profit
Market Share Leadership - 🧠 ANSWER ✔✔Low as possible prices to
become the market share leader
Product Quality Leadership - 🧠 ANSWER ✔✔High prices to cover higher
performance quality and R&D
Product Quality Leadership Example - 🧠 ANSWER ✔✔Pharmaceuticals
Fixed costs (overhead) - 🧠 ANSWER ✔✔Costs that don't vary with sales or
production levels
Total costs - 🧠 ANSWER ✔✔Sum of the fixed and variable costs for any
given level of production
Costs determine the... - 🧠 ANSWER ✔✔Floor
Customers determined the... - 🧠 ANSWER ✔✔Ceiling
External factors affecting Pricing decisions - 🧠 ANSWER ✔✔- Markets and
Demand
- Competitors' costs, prices, and offers
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
, - Other external factors: Economic conditions, reseller reactions,
government actions and social concerns
Market and demand factors affecting pricing decisions - 🧠 ANSWER ✔✔-
Pure Competition
- Monopolistic competition
- Oligopolisitic competition
- Pure Monopoly
Pure Competition - 🧠 ANSWER ✔✔Many buyers and sellers who have little
effect on the price
EX: Farming
Monopolistic Competition - 🧠 ANSWER ✔✔Many buyers and sellers who
trade over a range of prices
EX: Jeans
Oligopolistic Competition - 🧠 ANSWER ✔✔Few sellers who are sensitive to
each other's pricing/marketing strategies
EX: Airlines
Pure Monopoly - 🧠 ANSWER ✔✔Single seller
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED 4
